Student Loan Delinquencies Poised to Slam Borrower Credit Scores (1)

For the first time since before the pandemic, delinquent student loan borrowers will see a hit to their credit scores.

More than 9 million borrowers are currently behind on payments, comprising an estimated 43% of government loans, according to Department of Education data analyzed by VantageScore. Those who are behind on monthly bills could see scores drop by as much as 129 points, the credit-scoring firm said.

After a long break during the pandemic, federal student loan bills officially restarted in October 2023, but a leniency program enacted by President Joe Biden shielded borrowers from the worst repercussions of missed payments for a year. That ...